If this is your first visit, be sure to
check out the FAQ by clicking the
link above. You may have to register
before you can post: click the register link above to proceed. To start viewing messages,
select the forum that you want to visit from the selection below.

Insurance claim

13-02-2013, 23:28 PM

Hi All, my first post.
After tenant caused a small kitchen fire, I've replaced the entire kitchen. Insurers are covering upper units, decoration etc. but state they will not pay for lower kitchen units as they were not damaged in fire. Any thoughts on how to proceed?

Comment

Insurance is to return you to the same financial position after an insured incident - not to give you a whole new kitchen. If a fire has only damaged the upper units then that is all they are required to replace. Normally an insurer will do the best they can to match the new units to the old ones but it seems you have already gone and replaced the whole kitchen so this is now not an option.

All you can do now is give the insurer the invoice and expect a percentage of the total bill paid. Another thing worth bearing in mind is that they will only pay for the new value of the damaged units. This means that if the previous kitchen was £2000 new and half of it was damaged then they will pay out £1000 regardless of the value of the new kitchen you have just installed. Obviously any payout will be less the excess on the policy.

Steve Smith - Company Director at a leading Landlord Insurance broker with 20+ years experience in the industry
LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
See my profile for contact details

Comment

I appreciate JKO's and ashburton's comments on why improving the property is not the remit of the insurers!

After the fire, I attempted to match the units; this was not possible and the insurers were notified that the whole kitchen would need replacing. If I had not fitted a new kitchen the rental loss resulting from the mis-matched kitchen would have left me financially worse off. Whilst an insurance claim should not result in the improvement of a property, neither should it leave the insured financially worse off and I don't consider this to be a valid interpretation of the claim.

All comments gratefully received!

Comment

If just the top units were replaced being matched as closely as they could, how much would it realistically affect your rental income? Putting a figure on this would be very difficult. If I was living in a property charging me £800p/m and then half of my kitchen was replaced which didn't match but was new, I think I would have no grounds to ask to pay less rent but this is just my own personal opinion.

The other way to look at this is if the insurer paid for the whole kitchen then you would be in a financially better position as your property would be worth more and you would certainly be entitled to charge more rent. Insurance is not for making a profit on so this makes this situation quite tricky.

I think your only solution is to speak to the insurance company and argue your point (paragraph 1) while they argue there point (paragraph 2) and come to some compromise in the costs which you are both happy with.

Steve Smith - Company Director at a leading Landlord Insurance broker with 20+ years experience in the industry
LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
See my profile for contact details

Comment

If I had not fitted a new kitchen the rental loss resulting from the mis-matched kitchen would have left me financially worse off.

That's a bold claim: You're saying that unless units matches exactly the achievable rent will be reduced, which is far from obvious.
I think this is the key e.g. if attempting to have the tenant pay for anything related to lower units (upper bound being residual value of old units)

I guess that having the lower and higher units not matching in a pleasant way is a valid decoration idea, btw. It's all about taste, so difficult to quantify.

Comment

Hi- one problem is that you could go out and purchase an exact replacement from the manufacturer and still have the kitchen look mismatched due to damage to existing units from UV or simply manufacturing dilot differences (common issue when tiling).

The only thing you can do is to seek out an independant adjustor to assess the situation and fight the insurance company on your behalf.

Comment

A friend's rental flat above a restaurant had his entire contents replaced, (including kitchen units,) after a fire in the property below. There was no burn damage to anything in his flat but the smoke damage, (which was deemed carcinogenic,) was enough to cause replacement of everything by the insurance company. I saw the flat after the fire and could only just about smell the smoke damage. There was very little to see in the way of visible damage.

If its a leak from radiator and went though 2 flats and is visable im sure you will have noticed, you would have had to top boiler up and bleed radiators. Hes trying it on already said hasn't got insurance so hes blaming you

There's no default liability for a leak.
Leaks happen, and unless there's been either negligence or a deliberate act to cause the leak, the question of liability doesn't arise.
And as there isn't really anything anyone can do to "maintain" pipework, negligence is a bit of a stretch....

You can get a leak from a bedroom if the bedroom has a radiator. I have experience of a leaking central heating pipe under floorboards causing damage to a room below. It was a real pain to find as at first it appeared to be penetrating damp. You can also get leaks running a fair way under floorboards...

I rent a cottage. My tenant has asked to use a room for Airbnb for holiday lets.. My insurer has said it will negate the Cover they provide..They will cover for a lodger but not for Airbnb.. I rang another Insurer who provide cover but only if Airbnb is being provided within where the homeowner lives....

Airbnb not a problem but as the tenant want to arrange it, it falls under the "sub-letting" category which makes most insurers run a mile. Think you will have trouble getting the cover you need, coupled with other potential issues as per above post, I think this is more hassle than it's w...

flat in a typical terraced street, I also am the leaseholder for the upstairs flat, I receive no benefit for this I think the term is peppercorn lease. I have asked D Line for a quote on the flat I own and they have quoted me for this but they said I have to have cover...

Just to clarify. If the lease doesn't make anyone responsible for arranging the insurance, any party to it can go to the tribunal to force a change, but if it simply leaves the freeholder responsible for paying, you are likely to need unanimous agreement to change it.